Jacob Bright, a casual gambler, found himself in a complicated tax situation due to extensive gambling activities. You will also receive a copy of this form.
Reporting: Casinos and other gambling institutions report your winnings to the IRS on Form W-2G if they meet certain thresholds. Losses: You deduct gambling losses “below-the-line” as itemized deductions on Schedule A, but only to the extent of your winnings.
Winnings: You report your gambling winnings from casinos, lotteries, raffles, and other gambling activities as “above-the-line” taxable income. Basic Rules to Reporting Gambling Winnings Now that so many types of gambling are legal in Ohio, when do you have to report your gambling winnings to the IRS? If you enjoy gambling, whether occasionally or frequently, it is crucial to understand how your winnings and losses can affect your tax liability.